Company Number: 13440922

Analysis Date: 2025-07-20 16:26 UTC

1. Credit Opinion: APPROVE
   OSDP LTD demonstrates a solid financial position for a micro-entity with consistent growth in net assets and current assets over the past three years. The company is active, compliant with filing requirements, and has no indications of financial distress or director misconduct. With working capital significantly positive and low current liabilities, the company appears capable of meeting short-term obligations and servicing credit facilities.

2. Financial Strength:
   The company’s net assets increased from £2,801 in 2021 to £66,226 in 2024, showing a strong upward trajectory. Fixed assets remain minimal (£299 in 2024), indicating a lean asset base likely focused on service activities rather than capital-intensive operations. Shareholders’ funds align with net assets, reflecting no hidden liabilities. The balance sheet shows prudent management with a comfortable margin between current assets (£84,978) and current liabilities (£18,239), supporting operational stability.

3. Cash Flow Assessment:
   Net current assets of £66,739 as of June 2024 indicate healthy liquidity and working capital management. The company’s current ratio is approximately 4.66 (Current Assets/Current Liabilities), which is robust for a small enterprise and suggests strong short-term financial flexibility. No overdrafts or short-term borrowing are evident, reducing financial risk. The increase in current assets year-on-year suggests improving cash flow or receivables management.

4. Monitoring Points:

• Continued monitoring of receivables turnover and cash conversion cycle to ensure liquidity remains strong given the relatively high current assets.
• Watch for any sudden increase in current liabilities or reduction in net assets which may indicate emerging financial stress.
• Given the small fixed asset base, assess any future capital expenditure plans and their funding sources.
• Review director activities and business developments annually to ensure ongoing compliance and operational viability.